Business Studies Specimen Paper 2025-2026 ISC (Commerce) Class 12 Question Paper Solution

A manufacturing company files its GST returns and pays taxes through the official public portal of the income tax department.

Which type of online transaction does this represent?

What are the certificates issued by a company in India and traded on the London Stock Exchange known as?

Observe the relation between the first two words and complete the analogy:

Long chain of command : Organisational Barrier :: Unclarified assumptions : ______

Observe the relation between the first two words and complete the analogy:

Attachment to a report : Appendix :: Attachment to a letter : ______

Job ______ is a process of collecting and assessing data related to a job.

______ transfer refers to the practice of shifting employees across different roles, functions, or departments in an organisation to widen their skills.

A ______ report is prepared and submitted in the format as laid down by law.

Welcoming a new employee in an organisation with a firm handshake/‘namaste’ is an example of ______ communication.

Which of the following statements is incorrect about staff training?

Vestibule Training involves duplication of actual job conditions.

Apprenticeship Training involves only practical on-the-job experience.

Classroom Training includes case studies as one of the instructional methods.

Internship Training provides a good balance between theory and practice.

XYZ Ltd. follows a compensation policy that focuses solely on financial incentives as it believes that money is a great motivator. Despite receiving handsome salaries, several managers have recently resigned from the company.

Which one of the following is most likely the reason for their resignation?

The managers are satisfied with only financial rewards.

The managers are satisfied with non-monetary benefits.

The managers feel that the monetary incentives are too high.

The managers want both monetary as well as non-monetary incentives.

Which of the following items are commonly included as components of an employee’s pay slip?

(P) Provident Fund

(Q) Gratuity

(R) House Rent Allowance

(S) Employee Stock Option

Only (P) and (Q)

Only (P) and (R)

Only (Q) and (R)

Only (R) and (S)

Assertion: Globalisation implies treating the entire world as one market.

Reason: Globalisation involves cross-border movement of goods, services, capital, technology, information, and people.

Both Assertion and Reason are true, and Reason is the correct explanation for Assertion.

Both Assertion and Reason are true, but Reason is not the correct explanation for Assertion.

Assertion is true, and Reason is false.

Both Assertion and Reason are false.

State whether the following is True or False:

Flexible hours are beneficial to the employees but not to the employer.

State whether the following is True or False:

IRDA regulates the functioning of food laboratories in India.

State whether the following is True or False:

An unsolicited application letter is sent in response to a published job advertisement.

State whether the following is True or False:

A dividend policy of the company determines the extent to which profits can be retained in the business.

With reference to SEBI, briefly answer the following question:

Name any two intermediaries regulated by SEBI.

With reference to SEBI, briefly answer the following question:

State any two roles of SEBI as a regulator.

With reference to time rate system of wage payment, answer the following question:

Briefly explain the time rate system of wage payment.

With reference to time rate system of wage payment, answer the following question:

Give any two situations where this system is suitable.

Arpita used her savings to start a small business in her town. Her business rapidly gained popularity due to its prompt service and the quality of the goods. Arpita is now considering expanding her business, without changing the ownership status.

1. Identify the form of business ownership established by Arpita.  (1)
2. State any one advantage that Arpita enjoyed by using her savings to start the business.  (1)
3. Name any one form of business organisation other than the one formed by Arpita.  (1)
4. Can Arpita invite the public to invest in her business by issuing equity shares? Justify your answer by giving one reason.  (1)

State any four differences between job enlargement and job enrichment.

PQR Ltd., an Indian software company, assigned its customer support operations to an external agency based in Philippines. The arrangement proved successful, and PQR Ltd. is planning to outsource its Research and Development (R&D) wing to the same agency.

1. Identify the type of outsourcing used by PQR Ltd. in assigning its customer service operations. (1)
2. Specify any one benefit of the above type of outsourcing to the firm in Philippines. (1)
3. Give any one reason to explain why PQR Ltd. would choose to outsource a critical function like R&D. (1)
4. Briefly explain any one potential risk the company might face if they outsource their R&D wing. (1)

The Vice President (Marketing) of Pratiksha Ltd. Mr. Mehta gives complete autonomy to his team to plan and execute their work. Mr. Mehta intervenes only when the team seeks his suggestions or support. On the other hand, the Vice President (Production), Mrs. Kapoor, regularly interacts with her team and makes decisions collaboratively.

1. Name the leadership style where the manager solely takes decisions and announces them. (1)
2. Suggest a situation in which a centralised leadership style in an organisation could act as a morale depressant. (1)
3. Explain any two differences between the leadership styles demonstrated by Mr. Mehta and Mrs. Kapoor as described in the case. (2)

Briefly explain the significance of the following step in the employee selection process:

Reference check

Briefly explain the significance of the following step in the employee selection process:

Placement

Explain the concept of dry promotion in employee advancement.

Explain the concept of upgrading in employee advancement.

Study the data given below, which shows different forms of staff separation at Infotide Ltd., and answer the questions that follow.

1. Infotide Ltd. has temporarily reduced its workforce. Identify this form of staff separation. (1)
2. Name the type of interview that Infotide Ltd. should conduct at the time of staff separation. (1)
3. State any one monetary benefit available to the employees at the time of ‘service completion’. (1)
4. Which form of staff separation shown in the graph corresponds to retrenchment? (1)

Briefly explain any two benefits of e-business of the following:

Buyer

Briefly explain any two benefits of e-Business of the following:

Seller

Briefly discuss any two features of the following sources of finance available to an organisation in India.

Discounting of bills of exchange

Briefly discuss any two features of the following sources of finance available to an organisation in India.

Debentures

Briefly discuss any two features of the following sources of finance available to an organisation in India.

Venture Capitalists

Briefly discuss any two features of the following sources of finance available to an organisation in India.

Factoring

Elucidate the types of communication based on area of operation.

With reference to staff benefits, explain the following:

Gratuity

With reference to staff benefits, explain the following:

National Pension System (NPS)

As per the Morale Productivity Matrix, discuss the relationship between morale and productivity when morale is high.

With reference to Maslow’s Theory of the Hierarchy of Human Needs, explain the following:

Physiological Needs

With reference to Maslow’s Theory of the Hierarchy of Human Needs, explain the following:

Social Needs

Draft a letter in response to the above job advertisement published in a weekly newspaper.

The data given below shows the results of the survey conducted by the Human Resources Department at ABC Ltd. It helped them determine the most suitable sources of recruitment to meet their current manpower requirements.

Read the data carefully and answer the questions that follow.

1. State any one function of an employment exchange. (1)
2. With reference to the sources of recruitment used by ABC Ltd., identify one source each from: (2)
   1. the Internet
   2. the Intranet
3. Justify the use of Campus Recruitment by ABC Ltd. (1)
4. Suggest any two limitations of using Casual Callers to indicate why ABC Ltd. should avoid this method to fill their current requirements. (2)
5. By providing any two reasons, explain why Advertisements have been the most successful source of recruitment for ABC Ltd. (2)